It’s February, which means that the fun of the holidays has fully faded to a distant memory, spring still seems like eons away, and what we’re left with is winter.
But cheer up, friends! Though the sun may have skipped town for the southern hemisphere (jealous), there are still many things that can brighten your day, if not the weather. The CPG industry, as we all know, is ripe with news items that warm our hearts. As the world tests you with cold temperatures and freezing eyelashes, here are a few things to love about CPG right now.
- Your favorite stores will now come to you.
It seems like it’s a daily occurrence to hear that another retailer is eager to save you both gas money and time spent bundling up in 17 layers to hit the store for groceries. What Peapod and Instacart built is now being pushed even further as Jet.com gets into delivering not just health and beauty and household goods, but also groceries. And Target just bought Shipt in December, so you can get that warm and fuzzy feeling for same-day delivery from your favorite bulls-eye.
- Smaller brands can make a run for the big bucks.
A recent Financial Times article posited the question of whether big brands might be the next market bubble. “A longstanding and unchallenged assumption held by many is that Big Brand consumer goods companies are extremely safe and solid bets,” the author writes. The problem, however, is that these CPG companies are being priced higher and higher in the stock market, even though their sales are slumping. And that is a pretty good indicator that those big brands may be in a precarious bubble. While that, per se, is not necessarily something to love (sorry, big brands), that is some potentially good news for the smaller suppliers trying to get a toehold in the market. The holes that big brands may leave are perfect places for smaller brands to slip in and takeover, infusing the market with new names, new products, and new opportunities for consumers and retailers alike.
- Going to the grocery store is fun again.
If you haven’t heard of retailtainment yet, why not? Giving shoppers an experience doesn’t necessarily mean retailers have to provide skee-ball and an ‘NSYNC reunion. For a lot of shoppers, simply letting them sip some chardonnay or the latest craft beer while they peruse their ground beef and turkey options is enough. Plus, it keeps people in the store longer, which in turn can mean a higher register ring. What’s more, grocery stores can become a destination for consumers, rather than just another place to check off their to-do list. What’s not to love about that?
These are just a few things to love about CPG today, but the awesome thing about this industry is that it’s always changing, growing, and evolving. No doubt that there will be even more to love about it tomorrow, the next day, and the months and years after that.